Hyperinflation is that transition period when a paper money is clearly failing as a store of value but has not yet died as a medium of exchange. This blog is to look at this and any other interesting economic issues. Vincent Cate

Monday, December 16, 2013

Past Hyperinflation in France vs Current Hyperinflation in Venezuela

In both cases the government deficit was being financed with new money and that was the true cause of the hyperinflation. In both cases the government blamed shop keepers for rising prices. In both cases shops were basically robbed with government approval. In both cases shops had to shut down as they could not operate at the prices they were allowed to charge.